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Tech Giants Lift Nasdaq to Record as Smaller Stocks Stumble
8 Aug
Summary
- Apple's rally extends for third day, boosting Nasdaq-100
- Earnings misses in individual stocks like Trade Desk, Microchip Tech, and Block
- Expectations of September Fed rate cut and AI-driven growth offset volatility concerns
On August 8th, 2025, the key stock indexes managed to stay afloat by relying on the strength of the Nasdaq giants. Apple's rally extended for a third consecutive day, as the tech giant made up for its previous underperformance. This helped propel the Nasdaq-100 index to a fresh high, offsetting a cluster of earnings-related selloffs in individual stocks, including Trade Desk, Microchip Tech, and Block.
Despite concerns over last week's poor employment report and the typically volatile month of August, investors remained optimistic. Expectations of a September Federal Reserve rate cut, a more positive outlook on new tariffs, and the ongoing AI-driven tech boom have helped offset these worries. While some companies have been severely punished for missing forecasts or providing weak outlooks, the overall earnings growth of 11.8% compared to a year ago, driven by the largest tech firms, has kept the market moving forward.
The S&P 500 index is currently trading at levels first reached two weeks ago, maintaining a healthy uptrend. Analysts suggest that the market may experience some sideways churn, allowing overheated sectors to cool down while the market leans on fewer big names to stay supported. This scenario would be ideal for bullish investors, though it is not guaranteed.
